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Posted by BillPatch on August 20, 2007, 7:30 pm
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> I worked in the US for a few years and then moved back to
> my home country. I have around $57,000 USD in my Fidelity
> 401k account.
>
> I am not yet of retirement age (still in 30's), but would
> like to withdraw the money. Fidelity said there would be a
> 10% penalty & a 20% Federal Tax withholding, but 20% may or
> may be the actual taxes I owe.
>
> Assuming no other income for the year, other than the 401K
> withdrawal, how much would be actual tax I would have to pay
> on that amount.
$57,000 AGI, one exemption, zero itemized deductions, single
2006 rate yields a total tax of $15,522.75 on Form 1040NR
including the $5700 penalty . Besides the 20% withheld,
$3200 in estimated tax would be due in 2007.
You could save about that $3200 by dividing the withdrawal
between two tax years, up to $35250 in 2007, the balance
after December. Only $400 in estimated tax would be due.
Bill Patch
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